The Rule That Requires Financial Statements to Reflect the Assumption

question 2

Multiple Choice

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

• A) Going-concern assumption.
• B) Business entity assumption.
• C) Objectivity principle.
• D) Cost Principle.
• E) Monetary unit assumption.

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Definitions:

Individual

Refers to a single human being as distinct from a group, class, or family.

Public

A group of people in general, often referring to the society or the community as a whole.

Tribal

Refers to grouping of people, often based on shared interests or cultural heritage, implying a strong sense of community and belonging among its members.

Extended Self

The concept that individuals' possessions and their associations contribute to and reflect their identities.